No. of Recommendations: 3
NKE could be the next company dropped from the Dow Jones Industrial Average given its low stock price—and that might allow Berkshire Hathaway to finally make it into the venerable index.
Alphabet will be added to the Dow on June 29, replacing Verizon Communications. S&P Dow Jones Indices, which oversees both the Dow industrials and S&P 500 index, said that Verizon is leaving in part because its low stock price–around $46—gave the company an “immaterial impact” on the price-weighted index.
Nike is vulnerable to being booted out of the Dow industrials because it has an even lower stock price than Verizon, with shares trading at $42 apiece.
What company could be next to join the Dow industrials? Berkshire Hathaway, which has a $1 trillion market capitalization, might finally make the cut—and it would be fitting to add the conglomerate while its chairman and controlling shareholder Warren Buffett, 95, is still alive. Berkshire’s class B shares trade at nearly $500 apiece, which would fit right into the index, which now is full of higher-priced stocks trading above $100 a share. Berkshire’s weighting would be above 5%.
https://stocks.apple.com/AuPtAPUC9SFeInf0QAPrc0g 